Textile Recycling Market Report

The textile recycling market is experiencing steady growth, driven by global trends toward sustainability and the circular economy. Textile waste is one of the factors that lead to overflowing in landfills; therefore, the fashion industry is one of the largest environmental polluters. According to the United Nations Environment Programme (UNEP), the fashion industry is the second-largest consumer of water globally and accounts for some 10% of carbon emissions worldwide. In the United States, an average person produces an estimated 82 pounds of textile waste annually. Recycling textiles helps to reduce damages by restoring the fibers back into the production loop, decreasing waste materials, and saving natural resources, which also contributes to the principles of a circular economy, where the fabric is reused instead of discarded. Another growth driver forward for this textile recycling market is due to growing environmental concerns and the need for sustainable practices as consumers as well as industries are seeking to further reduce their ecological footprint.

The rise of conscious consumerism has led to a surge in demand for sustainable, eco-friendly products. Consumers are becoming more selective, preferring items made from recycled textiles or sustainable materials. This shift in purchasing behavior is driving brands to adopt ethical fashion practices. These more sustainable approaches are increasingly putting pressure on major companies to add, whether through recycled fabrics, minimizing the impact on the environment, or even ethical sourcing. Subsequently, brands associated with such values have a better chance of winning over the consumer's loyalty since this trend reflects the overall shift in fashion towards sustainability. It also serves the purpose of ensuring protection for the environment while at the same time catalyzing innovation in the design and manufacture of the products.

Advancements in recycling technologies are accelerating the expansion of the textile recycling market. Chemical recycling technologies are being designed to allow the material to break down at a molecular level, which allows high-grade fibers to be extruded from post-consumer materials. It therefore allows new fabrics to be easily produced. At the same time, closed-loop recycling loops are being designed where used clothing is collected, processed, and recycled into a new product in a single loop. This reduces waste and conserves valuable resources. Now, regarding digital traceability technologies, all lifecycle stages, from production through to disposal, are becoming traceable and transparent. There will be responsible recycling of textiles. Innovative recycled fiber blends probably based on cotton/polyester with other fibers will be woven and knitted into sustainable textiles. It will not only ameliorate recycling efficiency but will reduce virgin material usage as much because of their applications in the textile industry.

The policies are implemented by the governments and brands that hold manufacturers responsible for all the stages of the product, from designing and creation up to return and recycling cycles of the garments. In February 2022, the European Commission published the Strategy for Sustainable and Circular Textiles. This policy will ensure that all textile products sold in the European Union market are durable, recyclable, of primary origin from recycled fibers, and free of harmful substances for h humans and the environment by the 2030. Reports indicate embracing circular economy principles can reduce greenhouse gas emissions across the globe by 45%, and unlock an economic opportunity to the tune of US $4.5 trillion. This increasing adoption of the circular model, therefore, is pushing the development of a textile recycling market, enhancing sustainable production and waste management, and orienting economic growth toward environmental goals.

As governments introduce stricter regulations on waste management and sustainability, textile recycling companies are presented with significant opportunities to align with these evolving policies. For instance, Massachusetts passed a comprehensive textile waste ban as part of its 2030 Solid Waste Master Plan, aiming to reduce disposal by 30% state-wide by 2030. In parallel, the European Union is making substantial changes to its textile collection rules, with all EU Member States required to implement separate textile waste collection systems by January 1, 2025. This shift will ensure textiles are sorted, reused, and recycled more efficiently. Regulation of these aspects, along with demands for recycling prohibition of landfilling, and reduction in carbon footprint, is boosting the market for textile recycling. As governments stress sustainability and a circular economy more than ever before, it creates an appropriate environment to enhance recycling activities in the textiles area.

• Increased focus on sustainable materials for textile recycling
• Growth in circular economy models for fashion industry waste management
• Advanced sorting technologies improving recycling efficiency and material recovery
• Rising consumer awareness driving demand for recycled textile products
• Innovation in chemical recycling for complex textile blends and fibers

Non-recyclable components such as buttons, zippers, and synthetic fibers mixed with natural fabrics pose significant challenges to textile recycling. These materials can contaminate the recycling stream, complicating the process and raising operational costs. The presence of finishes and dyes, which are often difficult to break down, further hinders efficient recycling. Additionally, blended textiles—common in most garments—are particularly problematic as they cannot be easily separated or processed. As a result, recycling efforts become less effective, reducing the quality and volume of recycled materials, and ultimately limiting the potential for growth in the textile recycling market.

The quality of textiles designated for recycling is crucial to the process's efficiency and cost-effectiveness. Contamination, material damage, or complex compositions can substantially increase processing costs and, in some cases, make recycling infeasible. When materials like elastomers are present, they cannot be processed through mechanical recycling and must be discarded further escalating costs. This inefficiency not only strains recycling operations but also undermines the potential for growth in the textile recycling sector. The challenges associated with low-quality or incompatible textiles contribute to economic barriers, limiting the scalability and effectiveness of recycling initiatives.

Consumer awareness of the environmental benefits of textile recycling remains limited, and many are unsure how to properly dispose of used clothing. This lack of knowledge contributes to low participation in recycling programs and hampers efforts to meet recycling targets, particularly in regions where textile recycling is still in its early stages. Without extensive consumer engagement, the growth and success of textile recycling initiatives are at risk. This gap in awareness and participation presents a significant barrier, potentially slowing down the market's development and reducing the overall effectiveness of recycling efforts.

Companies are making significant strides in textile-to-textile recycling technology, crucial for mitigating environmental issues like water consumption and carbon emissions in the fashion industry. A notable example of this progress occurred in January 2024, when BASF and Inditex announced a major development in textile recyclability. Together, they introduced Loopamid, a new polyamide 6 (PA6) material, commonly known as nylon 6, made entirely from textile waste. This innovation represents the first fully circular solution for nylon apparel, allowing for the creation of high-quality garments using 100% recycled textile fibers. With this new product, BASF contributes to change for the fashion industry in a world that will increasingly be produced in more sustainable ways. It offers an alternative to the traditional nylon that is truly environmentally friendly, with a decisive influence on many of the challenges, starting with the reduction of waste as well as conserving resources. In this partnership, one can sense continued investment by industry leaders in sustaining conversation around circular economy principles within textiles.

Companies are strategically expanding their operations to enhance textile recycling infrastructure, reduce waste, and contribute to the broader sustainability goals within the fashion and textile sectors. For example, Debrand, a Canadian company specializing in sorting and logistics for end-of-life apparel and footwear, has launched its first textile sorting facility in the United States. The new 32,000-square-foot facility is designed to strengthen North America's textile recycling capabilities, addressing the growing demand from brands and local governments for better solutions to divert clothing from landfills. The facility will incorporate a mix of automated and AI-powered sorting technologies, along with manual sorting processes, to efficiently handle textile waste. This expansion not only supports the circular economy but also positions Debrand as a key player in driving the sustainability efforts of both the fashion industry and public sector recycling initiatives.

The Asia-Pacific region is poised to remain a leader in the global textile recycling market, driven by its large population, rapidly growing textile industry, and increasing focus on sustainability. Key countries such as China, India, and Japan are expected to significantly contribute to this growth. For example, China sets aggressive targets whereby by 2025 it will ensure at least 25% of waste recycling and at least 30% by 2030. Reportedly, the region aims at a minimum of a 30% recycling rate for textile waste by 2030. The goal of three million metric tons of recycled fibers annually will be achieved. The policies and incentives of these countries help further this transition toward a circular economy in terms of textiles. Those linked with strong pushes to reduce waste in textiles have made this region a prime growth location for the business of textile recycling.

Growing awareness by European consumers about the environmental impacts of textile production is driving the demand for more recycled textiles, thus raising the demand for a regenerated market. Coupled with efficient collection systems, enough sorting facilities, and modern recycling technologies, extensive recycling infrastructure in Europe may further propel this trend. The European Union introduced new regulations for December 2023 to curtail the textile industry's negative environment. The textile industry is considered the third biggest polluter in the world, and it contributes 10 percent to global carbon emissions. Europe's aggressive positioners put the region at the forefront of directing the future face of global textile recycling with strict mandates on waste reduction and recycling. With the law being refined and the onus of green options falling into consumers' pockets, Europe is set to play a very important role in pushing the circular economy into the textile sector.

The report provides a detailed overview of the textile recycling market insights in regions including North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa. The country-specific assessment for the textile recycling market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the textile recycling market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which is anticipated to have a substantial impact on the growth of the textile recycling market. Some key countries and regions included in the textile recycling market report are as follows:

• Textile recycling market detailed segments and segment-wise market breakdown
• Textile recycling market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in Textile Recycling industry)
• Current, historical, and forthcoming 10 years market valuation in terms of textile recycling market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Textile recycling market demand analysis
• Textile recycling market regional insights with the region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in the textile recycling market
• Regulatory landscape by key regions and key countries
• Textile recycling market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on textile recycling market forecast by countries
• Mergers and acquisitions in the textile recycling market
• Essential information to enhance market position
• Robust research methodology